06-10-2024 Council Meeting Packet

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Feasibility Report 2024 / 2025 Street Reconstruction and Municipal Sewer and Water Extension Project Colonial Woods City of Lino Lakes, MN WSB Project No. 023620-000 Page 6 5. Financing5.1 Opinion of Probable Cost A detailed opinion of probable cost is included in Appendix B of this report. The opinion of probable cost is based on projected construction costs for 2024 through 2025 and includes a 10% construction contingency and 20% indirect costs. The indirect costs include engineering, legal, and administrative costs associated with the project. The project costs are summarized as follows: 2024 / 2025 Street and Utility Improvement Project Opinion of Probable Cost Breakout Probable Cost Street and Storm $2,580,649 Sanitary Sewer $701,903 Watermain $741,657 Total Project $4,024,209 5.2 Funding The street and storm water infrastructure improvements are proposed to be funded by the issuance of Stre et Reconstruction Bonds, repaid by a property tax levy. There are no proposed assessments associated with the roadway and drainage improvements. Funding of the extension of municipal watermain and sanitary sewer improvements is proposed to be provided by the City’s Area & Unit Trunk Fund and special assessments. In the table above, the total sewer and water infrastructure cost is $1,443,560 of which $247,455 is attributable to trunk oversizing. Generally, oversizing is calculated by the difference in cost between a regular main and an oversized main. There are other factors considered such as additional depth and difference in materials. The remaining amount to be funded through special assessments is $1,196,105. This equates to $41,245 per unit/lot. The City consulted with an independent appraiser to conduct a special benefit analysis of the proposed sewer and water extensions. The analysis supported an assessment amount of $18,000 per unit/lot. This would total $522,000 from special assessments to benefiting properties. A Preliminary Assessment Role and corresponding map is include in Appendix C. 2024 / 2025 Street and Utility Improvement Project Funding Overview Breakout Street Reconstruction Bond Area & Unit Trunk Fund Assessment Total Street and Storm $2,580,649 $2,580,649 Sanitary Sewer $440,903 $261,000 $701,903 Watermain $480,657 $261,000 $741,657 Totals $2,580,649 $921,560 $522,000 $4,024,209 305